UK Farming Statistics

UK March Agricultural Price Index - 16 May 2013

The price index for all outputs rose by 3.2 per cent in March and is 14.5 per cent higher than the same time last year. The price index for all inputs has fell by 0.1 per cent in March but is 9.7 per cent higher than this time last year.

The Agricultural Price Index (API) measures the monthly price changes in agricultural outputs and inputs for the UK. The output series reflects the price farmers receive for their products, also referred to as farm gate price. Information is collected for all major crops (for example wheat and potatoes) and on livestock and livestock products (for example sheep, milk and eggs).

The input series reflects the price farmers pay for goods and services. This is split into two groups: goods and services currently consumed; and goods and services contributing to investment. Goods and services currently consumed refer to items that are used up in the production process, for example fertiliser, or seed. Goods and services contributing to investment relate to items that are required but not consumed in the production process, such as tractors or buildings.

Key points

Figure 1: Agricultural Price Indices (2005=100)

The price index for all outputs rose by 3.2 per cent in March and is 14.5 per cent higher than the same time last year. The price index for all inputs has fell by 0.1 per cent in March but is 9.7 per cent higher than this time last year.

Outputs

The crop product index rose by 2.8 per cent in March and is 27 per cent higher than this time last year. Price rises in certain crops continue to rise after the wet harvest in 2012. Potato prices remain high and rose by another 14 per cent in March and they now more than double (125 per cent) the price they were last year. Fresh fruit rose by 14 per cent in March and are 50 per cent higher than they were last year. These rises were offset by a fall in cereals prices of 3.4 per cent in March although they are still 25 per cent higher than the same time last year.

Chart 2 Potato Price Index (2005 = 100)

Animal and animal product prices rose by 4.0 per cent this month and are now 5.6 per cent higher than the same time last year. Animals for slaughter rose by 7.4 per cent in March which was largely down to an increase in sheep prices that rose by 20 per cent. The rise in sheep prices was due to tight supplies of old season lamb and increased numbers of higher value new season lamb. Despite the sharp rise in sheep prices they are still 12 per cent below last year’s price.

Chart 3 Fresh Fruit Price Index (2005 = 100)

Inputs

There has been very little movement in prices for inputs in March with the overall index for inputs falling by 0.1 per cent. Compared to last year all goods and services currently consumed in agriculture are up 12 per cent. The main contributors to the upward trend are seeds that are up 46 per cent and animal feeding stuff up 16 per cent. Both of these are series are affected by the poor weather conditions in 2012, in particular the poor cereal harvest.